The cash book of OJ Limited as at 31 December 2016 discloses a balance of $18,450

which did not agree with the bank statement balance. Investigation revealed the following:

1. Cheques received of $52,000, $5,000 and $12,450 were still in the business drawer.

2. $1,200 and $1,800 standing orders for the payment of electricity charged and Insurance respectively

were paid by the bank but this has not been recorded in the cash book of OJ Limited.

3. The bank charged $150 for a cheque book issued to Lexis Ltd.

4. The bank has wrongly debited a cheque of $4,955 into Lexis Ltd account which should have been

placed in another customers account.

5. A credit transfer of $5,000 had been made in favor of Lexis Ltd. The transfer has not been recorded

in the cash book.

6. A cheque of $70,000 drawn by Lexis Ltd was correctly entered in the cash book but debited to the bank statement as $7,000

7. The following cheques which were paid in November 2016 had not been presented:

000123 $2,000

000124 $5,000

000125 $4,655

Required:

Prepare

i). The adjusted cash book

ii). A statement to reconcile the balance in (i) above to the bank statement balance.